No matter what China does, its economy’s momentum will be sapped by an aging, shrinking labor force, past overdrafts of public spending, and weak consumption. While the country is often now compared to Japan three decades ago, its outlook is actually much bleaker.
MADISON – On January 1, Chinese President Xi Jinping published an article reaffirming his longstanding belief that the East is rising, while the West is declining. But in his farewell address just weeks later, outgoing US President Joe Biden made a point of saying that the US has “pulled ahead in [its] competition with China.” Biden saw what Xi would prefer to ignore: the demographic foundation of China’s economy is crumbling.
MADISON – On January 1, Chinese President Xi Jinping published an article reaffirming his longstanding belief that the East is rising, while the West is declining. But in his farewell address just weeks later, outgoing US President Joe Biden made a point of saying that the US has “pulled ahead in [its] competition with China.” Biden saw what Xi would prefer to ignore: the demographic foundation of China’s economy is crumbling.